05 SEP,2022 | MEDC
GST collections remained above Rs. 1.4 trillion for the sixth month in a row. They increased 28% year-on-year to Rs. 1.43 trillion. This was largely due to better compliance, revival in consumption, and elevated inflation levels. High GST collections in the coming months are also expected due to the emergence of the festive season, and the concomitant lifting of most Covid-related restrictions. That is also expected to be a big consumption driver for most businesses in India. The consistently high GST collections indicate an imminent post-Covid economic revival, which could be a harbinger of inclusive socioeconomic growth. Policymakers have handled the fragile situation well so far, but it needs to be emphasized that RBI cannot tame inflation without the support of better fiscal policy.